tlgabe
New Member

Is a distribution from an inherited IRA considered investment income for purposes of EITC?

I have a special needs brother.  In the past he qualified for earned income tax credit.  I am trying to figure out why no credit this year.  Is a distribution from an inherited IRA considered investment income?  It is not listed on the investment income smart worksheet, and the worksheet shows he is eligible for the EITC.  So I cannot figure out what else would be limiting him from getting the EITC.  On the 1040, Line 17, Turbo Tax printed "NO" for EITC.    He has about $7,000 of earned income and interest and dividends well below the $3,500 investment income threshold.